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The aim of this paper is to explore the managing of cost drivers using a business model (BM) design. Particularly, the paper explores the link between a BM and cost driver analysis adopting a service-dominant logic (SDL) perspective. The empirical domain addresses the dynamic and complex scenarios of electric cars, where many actors are involved, several marketing and technological aspects are still unclear and where the high cost of batteries delays the wide diffusion of electric vehicles. The paper explores how SDL could support the BM design and how the cost driver analysis and BM design are linked when the SDL perspective is adopted.

This paper analyses secondary data and findings collected by interviews performed with managers belonging to the automotive sector.

The results show that the BM design could be a solution to address cost problems and the cost driver analysis may play a role in formulating an economically sustainable BM. Splitting a product into a “package of services” can provide direction for research of an alternative BM design in an attempt to manage the impact of cost drivers and pursue economic sustainability.

This paper explores a topic that has not yet focused on cost management research, i.e. the link between BM and cost driver analysis adopting an SDL perspective.

In today's competitive market subject to various uncertainties, supply chain flexibility (SCF) arose as a potential weapon to enhance the firm's performance. This paper model the effect of SCF on automobile industry performance during sales promotional schemes (SPS), which has turned out to be one of the most important marketing tools.

In view of the literature and the expert opinion taken from an automobile OEM, the SCFs and performance measures pertaining to the SPS environment have been identified. For the purpose of ranking the SCFs with respect to the performance measures, the Interpretive Ranking Process (IRP) has been applied using the direct contact method as a means for establishing the contextual relationships between SCFs and performance measures and to draw the interpreting reasons behind them.

The findings of this study along with the validity and stability of the results assessed through the system graphs and sensitivity analysis demonstrate that flexibility at the procurement end followed by the organizational end has the highest impact on the performance of the company during SPS.

Analysis of SCFs in regard to performance measures during SPS helps improve supply chain performance and offer valuable insights to the practicing managers in decision-making. This study augments the flexibility literature, by clubbing the two independent research streams, SCF and SPS.